why do companies pay benefits, health insurance, and retirement benefits instead of paying a higher wage?
Posted on Jun 01, 2008 under Insurance Information |Wouldnt it make more sense if the company let the employees decide how they should allocate their earnings between health insurance and retirement and so forth?
June 1st, 2008 at 4:08 am
Yes, if the employee quits he doesnt get benefits. If the employee quits under your plan he walks away with a hefty sum oif money and there is no way to keep an employee but higher wages. I hate benefits and higher wages altogether. I hate unions more though LET FREE TRADE REIGN!!!
June 1st, 2008 at 4:08 am
Because the tax laws surrounding benefits and company pre- and post tax earnings are very complex and manipulated every year by CON gress(opposite of PROgress).
Most people in the past were happy to GET any benefits, and Unionization made it simpler to write benefits into contracts on a group basis, rather than the complexity of individuals. The larger the group, the better the premium rates are going to be (unless your group is Farmers, Miners, or Mountain Climbers).
As long as you ask questions like that, you might like to go here: http://www.fairtax.org
June 1st, 2008 at 4:08 am
Most companies will give you extra money if you do not use their health insurance and you can get your own insurance. Most of the time though the company can get you better insurance for cheaper. I don't know many people that would like to have their company not offer benefits and have to find them themselves. The insurance the company offers is much better then what you can get yourself.
June 1st, 2008 at 4:08 am
Higher wages is about attracting employees, while benefits packages are about retaining employees. It is much more efficient to keep an employee around after they have been trained. Most retirement plans, stock option packages, insurance benefits, etc. are designed to pay higher rewards to those with greater tenure so the longer you are around, the more expensive it becomes to leave.
June 1st, 2008 at 4:08 am
Wages would have to be increased a ridiculously high amount to compensate for benefits. Alot of ppl wont use their benefits very much so when the company offers them they count on alot of ppl not fully taken advantage of them. Higher wages would just be a waste of money. Like the person above me though, I also hate unions.
June 1st, 2008 at 4:08 am
They are benefits because the employer gets "bulk pricing" because he is buying insurance for all his employees.
Look into your plans. For example if you pay $100 your employer pays $200 for insurance for a total of $300 a month. The same coverage may cost you $500 a month if you tried to get it yourself.
So if you got your higher wage (+$200) you would actually make less because you would pay an extra $200 for insurance
June 1st, 2008 at 4:08 am
In the long run you are better off with these benefits. Most of the time a union is behind the benefits you mentioned. A company like walmart is non union, so you will not get good benefits, nor will you get good pay. what is the use to make 30 dollars an our and you don't get medical insurance, which will cost you about 400 dollars a month for a small family; and you end up with no income when you retire. Also, lets say that you do get the above salary and you end up sick; will will be broke in one week if you don't have medical. So, the answer to your question is; get a union job or you will pay later.
June 1st, 2008 at 4:08 am
I work for a large company and I feel I should be paid more for what I do but they do give the option for heaalth insurance and retirement benefits. The benefits are optional. I do feel like they can offer me a better price on insurance than if I were to try to get it on my own. I kind of consider that I am working part of the time for my benefits at that price.
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